The President of Mexico, Claudia Sheinbaum, declared that the national Gross Domestic Product will have a good year in 2025, despite the cut in the forecast by the Bank of Mexico. Banxico estimated that the Mexican economy will only advance by 0.6 percent this year, due to the contraction recorded in the last quarter of 2024.
According to the Timely Estimate from Inegi, the economy of Mexico contracted by 0.6 percent in the last quarter of 2024, mainly due to a decline in primary activities. Claudia Sheinbaum attributes the unexpected drop in GDP to the end of public works projects from the previous administration. She highlighted that, despite this, new works and projects are already being bid out to boost the economy.
In her statements, Sheinbaum mentioned that an economic boost is expected in April and May thanks to public works construction and planned investments. She emphasized the work of the Ministry of Economy to attract investments, such as the announcement of a multi-million dollar investment by Netflix. The president also mentioned government welfare programs and the Mexico Plan as part of the strategies to promote economic growth in 2025.
On the other hand, the Bank of Mexico identified several threats to the Mexican economy in 2025, including possible tariff increases from the United States, which would raise economic uncertainty. Despite these risks, Banxico did not consider them in the update of its growth forecast. Among the concerns are the uncertainty regarding US policies, slower progress of the US economy, and possible episodes of volatility in both national and international financial markets. The Governing Board indicated that they do not yet have sufficient information to assess the measures to be taken in response to these potential scenarios.
